What really matters? A triumph of brand extension: Evidence from Engro Corporation

Year 2018, Volume: 1 Issue: 2, 1 - 16, 30.12.2018

Sara Javed Md.salamun Rashıdın , Wang Jıan

Abstract

The intent of this study is twofold; firstly, to
find out the different elements of the brand extension in different category
product that influences it, secondly, evaluate the impact of these dimensions
on brand extension. The study considered Engro as parent brand. The targeted
brand was Engro Foods. A total of two hundred valid responses were collected
from Lahore and Sahiwal through a self-administered survey. Reliability was
tested by using Cronbach’s alpha. The study used descriptive statistics;
correlation analysis and regression analysis. Correlation results indicate that
all variables; similarity, perceived risk, brand reputation, and innovativeness
were positively correlated with evaluation of brand extensions. However, “brand
reputation” was strongly correlated with the evaluation of extensions as
compared to other variables. As far as regression analysis is concerned
adjusted R²
indicates that 48.0% of “Engro” extension was affected by the independent
variable. The mean score highlighted that “Engro extension” was positively
evaluated by customers and have a positive attitude towards them on all the
variables. The study showed due to the strong reputation of parent brand, the
Engro unrelated category extension “Engro Foods” was more favorably evaluated
by customers.

Keywords

Brand Extension, brand reputation, perceived risk

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